Is Beauty Bungalows entitled to receive a rebate from the designated supplier for furniture, fixtures, and equipment?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
There is one designated supplier for certain items of furniture, fixtures, and equipment that you will use in the build-out of your Beauty Bungalows franchise. We are entitled to receive a rebate equal to 5% of the amount a franchisee purchases for items sourced through this supplier. None of our owners, directors or affiliates owns any interest in this designated supplier. In the 2024 fiscal year we did not receive any amounts from our suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, Beauty Bungalows is entitled to receive a rebate from the designated supplier for furniture, fixtures, and equipment. There is one designated supplier for certain items of furniture, fixtures, and equipment that franchisees will use in the build-out of their Beauty Bungalows franchise.
Beauty Bungalows is entitled to receive a rebate equal to 5% of the amount a franchisee purchases for items sourced through this supplier. The FDD also states that none of Beauty Bungalows's owners, directors or affiliates owns any interest in this designated supplier. In the 2024 fiscal year, Beauty Bungalows did not receive any amounts from its suppliers.
This arrangement means that while franchisees are required to purchase certain items from a designated supplier, Beauty Bungalows benefits financially from these purchases through the 5% rebate. This could incentivize Beauty Bungalows to maintain the relationship with the designated supplier, potentially impacting the franchisee's costs and choices. Franchisees should consider this arrangement when evaluating the overall cost and potential profitability of a Beauty Bungalows franchise.